It’s doubtful Elon Musk is looking for an opinion on his Twitter purchase from Mr. Wonderful of Shark Tank, but Kevin O’Leary still felt inclined to share it with him.
He appeared on CNBC and essentially said Musk is nuts for valuing Twitter at $44 billion.
“It is full of bots. It’s a poorly run company … If he’s going to take it over, maybe he can get back his $44 billion. I don’t think it’s worth $10 billion,” [Twitter] needs new management. I think he should get the whacking stick out if he’s going to own it and just clean house and start from scratch. It’s just a horrible company.”
Hard to argue with that, especially with lightweight CEO Parag Agrawal driving the ship.
This week’s big news is that Musk is suddenly all-in again on going forward with his purchase.
O’Leary was a Twitter shareholder, but he felt Musk would try to negotiate a new price of $35 per share instead of the $54 he offered, so O’Leary dumped much of what he held.
He’s perplexed that Musk is cool with that $54 valuation. Mr. Wonderful thinks that without the Musk hype, a share of Twitter stock’s actual value would be between $12 and $15.
“Musk would be able to thread the needle through litigation and do the deal for much less. And I don’t know why he didn’t do that. He didn’t have to pay this ridiculous price.”
Does Musk know something the rest of the world doesn’t? It’s usually the case.
So the bottom line is if Kevin O’Leary were asked if he felt this would all work out well for Musk, his answer would be, “it’s a no for me.”
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